How to Determine Daily Forex Trends using 50 200 EMAs
Many traders still struggle to determine the daily forex trends and this has compelled us to create this video on…
How to Determine Daily Forex Trends Using 50 200 Day Exponential Moving Average!
Firstly, to know what’s the Daily Forex Trend, you will need to use the Daily Time Frame on your selected Forex Pair. In this example, we will be looking at EURUSD. You don’t need any complicated indicators except 2 popular and common indicators in the 50 day Exponential Moving Average and 200 day Exponential Moving Average.
Thank you for your readership. We are truly grateful!
Hope that you like the strategies that we share.
If you like the strategies here, you will absolutely
love our latest strategy...
The aim of Morningpips is to finish trading by the morning.
Simple as that... Check it out!
To determine the Daily Forex Trend, you just have to observer the 200 day EMA. If price is below the 200 EMA, then it’s a downtrend. If price is above the 200 EMA, then it’s an uptrend. It’s simple as that… and if you can just stick to this simple rule, you will almost be trading with the trend almost all the time.
In a downtrend, when the price is between the 50 EMA and 200 EMA, this is the sell zone. You just need a trigger to make your entry into a nice short position for a low risk trade. Similarly, in an Uptrend, when the price pullback in between the 50 EMA and 200 EMA, then this is a Buy Zone in the up trend. You will need a trigger to get into position.
- In an Uptrend:
Price is Above the 200 EMA
Only Consider Long Positions
Buy Zone is when price enters in between 50 EMA and 200 EMA
- In a DownTrend
Price is below the 200 EMA
Consider ONLY Short Positions
Sell Zone is when price enters in between 50 EMA and 200 EMA
This is a simple way to determining uptrend and downtrend. If you just consistently use these rules, you will soon find that you are trading with the trend most of the time. It will take some discipline but this is highly effective especially if you are starting out as a manual trader.
If you want the fastest way to profitable trading, then do consider our Real Time Forex Signals service.
Claim Your $60 No Deposit Bonus Here
All you need is to have your live account verified!
Of course, you need to open a live account...
2 Brokers that we like A LOT!
USD30 from each Forex Broker Below.
Both Forex Brokers have excellent rating!
We use both of these brokers and proudly promote them!
Other Analysis Today